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District Policies - D- Fiscal Management

Table of Contents

DA Goals and Objectives 
DB Budget Planning 
DC (See DB) Annual Operating Budget -KSA 72-8156; 72-8204; 72-7053; 72-8204a 

DFAA Grants and other Outside Financial Resources 
DFE Investment of Funds -KSA 9-1402 et seq.; 17=5002 
DFG Fees, Payments and Rentals -KSA 72-5389; 72-5391 
DFK (See DFG) Gifts and Bequests (See DFG) -KSA 12-1252; 72-1253; 72-8210; 728212 
DFM (See DFG) Equipment and Supplies Sales -KSA 72-821
DH Bonded Employees – KSA 72-8202d 
DI Accounting and Reporting 
DIA Fixed Assets Accounting -KSA 75-1120a 
DIC Inventories 
DJB Petty Cash Account 
DJE Purchasing 
DJEB Quality Control 

DJED Bids and Quotations Requirements 

DJEE  Local Purchasing 
DJEF Requisitions 
DJEG Purchase Orders and Contracts 
DJEJ Payment Procedures 
DJFA Purchasing Authority 
DJFAB Administrative Leeway (See CMA) 
DK Student Activity Fund Management 


DA  Goals and Objectives

The board shall adhere to strict fiscal accounting procedures as outlined in board policies and rules.  The board shall make an effort to secure goods and services from responsible merchants and vendors at a price and quality that will enable the staff to fulfill the district's educational goals.

Approved:  October 12, 1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DB  Budget Planning

A planned, systematically prepared budget is essential in the management of the district.  The board delegates to the superintendent the authority to develop a budget for the board's consideration.

Approved:  October 12, 1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DC  Annual  Operating Budget (See KBA)

The district budget shall be prepared by the superintendent and executive director of fiscal management and business operations and shall reflect responsible stewardship of resources that supports the district's strategic plan.

The superintendent shall follow the adopted budget.

The district shall fund the operating budget according to approved fiscal and budgetary procedures required by the State of Kansas.

Budget Forms

Budget forms used shall be those prepared and recommended by the Kansas State Department of Education.   Budget summary documents shall be prepared on forms provided by the Kansas State Department of Education.

Priorities

The board will establish priorities for the district on a short-term, intermediate and long-range basis.

Deadlines and Schedules

Deadlines and time schedules shall be established by the board.  The budget publication and budget hearing shall adhere with Kansas law.

Encumbrances

An encumbrance shall be made when a purchase is made or when an approved purchase order is processed.  All encumbrances shall be charged to a specific fund.  All necessary encumbrances shall be made by the executive director of fiscal management and business operations.

Recommendations

Recommendations of the superintendent and professional staff concerning the district's educational program and related budget figures will be presented to the board prior to submission of the preliminary draft budget.  All superintendent and staff recommendations will be presented to the board no later than July of each year.

Preliminary Adoption Procedures

The superintendent will be responsible for developing the budget cover letter.  It is recommended that the letter include a restatement of the goals and objectives of the district and a list of budget priorities.  An explanation of line item expenditures will be included in the letter.  Fund expenditures and line categories will also be explained in terms of how the budget meets the goals and objectives of the district and enhances completion of priority programs.  A preliminary draft of the district's budget will be submitted by the superintendent to the board on or before July 30th of each year.

Budget Publication and Budget Hearing

The board shall publish the budget and conduct budget hearings according to state law.

Budget Transparency

The district shall comply with the requirements of the Kansas Uniform Financial Accounting and Reporting Act and rules and regulations promulgated by the Kansas State Board of Education thereunder in maintaining, reporting, publishing on the district’s website, and making available to the public specified budgetary records, forms, and information.

Management of District Assets/Accounts

The superintendent shall establish and maintain accurate, efficient financial management systems to meet the district’s fiscal obligations, produce useful information for financial reports, and safeguard district resources.  The superintendent shall ensure the district’s accounting system provides ongoing internal controls.  The superintendent shall review the accounting system with the board.

Fraud Prevention and Investigation

All employees, board members, consultants, vendors, contractors and other parties maintaining a business relationship with the district shall act with integrity and due diligence in duties involving the district’s fiscal resources.

The superintendent shall develop internal controls that aid in the prevention and detection of fraud, financial impropriety or irregularity.  Each member of the management team shall be alert for any indication of fraud, financial impropriety or irregularity within his/her area of responsibility.

Reporting Fraud

An employee who suspects fraud, impropriety or irregularity shall promptly report those suspicions to the superintendent.  The superintendent shall have primary responsibility for any investigations, in coordination with legal counsel and other internal or external departments and agencies as appropriate.

Board Approved:  August 27, 2007

Updated:  November 23, 2009

Revised:  November 11, 2013

Revised: July 27, 2015

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DFAA  Grants and other Outside Financial Resources

The board encourages the superintendent to secure federal, state and private grants, or other alternative funding sources for use in curriculum development, staff development, instructional or activity programs and other areas as directed by the board.

The board shall approve all grant applications and requests for funds from other     sources before their submission.

Employees are prohibited from using the district’s or a school’s name, logos or service marks in connection with requests for private donations and from any on-line resource without prior board approval.

Approved:  August 9, 2004

Updated:  November 23, 2009

Reviewed:  November 11, 2013

Revised:  April 11, 2016

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DFE  Investment of Funds

The investment of school district monies shall be the responsibility of the superintendent. 

Any monies not immediately required for the purposes for which the monies were collected or received, shall be invested as provided by law.

All offerings of monies for investment shall state the amount to be invested and the maturity date of each investment.

All banks and savings and loan associations with offices located within the district shall be given an opportunity to bid on all monies offered for investment.  All bids shall be specified on the basis of simple interest.

Distribution of monies for investment shall be as follows:

The superintendent shall inform each eligible bank and savings and loan association of the total amount of money to be invested on a specified date and the maturity date of the investment.  Each bank or savings and loan association bidding shall submit a single bid of the rate of interest it would pay on all or part of the funds to be invested.

Monies shall be invested with the highest bidder in such amount as the bidder will accept, and any remaining amounts shall be invested with the next highest bidders in order of interest rate offered.  No bidder shall be eligible to receive any funds in the same offering at a rate lower than its single bid.

No bid less than the most recently investment rate as determined by the state treasurer shall be accepted.  No funds will be invested for maturities of more than one year.

Any monies not invested in banks and savings and loans in the district or located in counties in which a part of the school district is located may be invested in the municipal investment pool fund or United States Treasury bills or notes as authorized by Kansas law.

Monies available for reinvestment as a result of maturities may be reinvested with the bank or association holding such monies provided the bank or savings and loan association agrees to pay the same or higher rate as that offered by the highest bidder at the time of re-offer.

In the event of identical high bids, the allocation of monies to be invested between the high bidders shall be at the discretion of the superintendent.   

The treasurer shall record the following information: the date of each offering; the name of each bank or savings and loan association notified; the name of the officer notified; the bid, carried to five decimal places (.11111); the amount of monies the bank or savings and loan association is willing to accept at the rate bid.

To be eligible to receive invested funds or deposits from the district, any otherwise eligible bank or savings and loan association shall have on file in the office of the district treasurer a letter requesting its inclusion in the bidding process and providing proper assurance of compliance with requirement of applicable laws and board policy relating to maintenance of proper security and assurance of its membership in good standing consistent with current federal regulations.  The superintendent shall report to the board on the district's investments.

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DFG  Fees, Payments and Rentals (See KG)

Proceeds from fees for building or equipment use or rental received in the same fiscal year will be credited to the general fund.  Fees received in the subsequent fiscal year shall be deposited in the capital outlay fund 

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DFK Gifts and Bequests

Gifts, including cash, with a value of $100 or more shall be presented to the board.  Gifts, including cash, of less than $100 may be accepted by directors, department coordinators or building administrators but shall be reported to the board.  All cash contributions shall be properly receipted and subject to audit.  A report which accounts for all gifts to the schools shall be made in writing to the board each June.  Income derived from gifts and bequests will be credited, if possible, as specified by the board. 

The board reserves the right to accept or reject any gift.

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DFM  Equipment and Supplies Sales

Excess or unusable district-owned equipment and supplies will be disposed of at the discretion of the board.  Surplus items shall be sold as directed by the board and the sale proceeds credited to the capital outlay fund.

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DH Bonded Employees​ 

A surety bond in the amount of $100,000 is required for the superintendent, treasurer, assistant treasurer, clerk and assistant clerk.  A blanket bond may be purchased by the board covering district employees designated by the board

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DI  Accounting and Financial Reporting

Except as otherwise required or permitted by Kansas law, the district shall utilize accounting procedures and fiscal procedures in the preparation of financial statements and financial reports that conform to generally accepted accounting principles as promulgated by the governmental accounting standards board.as The superintendent shall prescribe such accounting and fiscal procedures and may amend the same from time to time as may be necessary or desirable to conform to applicable standards, amendments and interpretations of such principles by the government accounting standards board or the Kansas Director of Accounts and Reports.

Accounting and Financial Report, 6/l3/05

Revised:  November 11, 2013

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DIA Capital Assets Accounting Policy

Capital assets, including property, plant, equipment, and infrastructure assets, are reported in the governmental activities column in the district’s financial statements, but are not reported in the fund financial statements.  Capital assets are defined by the District as property with an initial, individual cost of more than $500.  The district will depreciate the assets with a value of $5,000 or greater and software $100,000 or greater over the term of their estimated remaining useful economic lives.  District capital assets are recorded at historical cost (or estimated historical cost if actual historical cost is not available) and updated for additional and retirements during the year.  Donated capital assets are valued at their estimated market value on the date donated.  The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.  Major outlays for capital assets and improvements are capitalized as projects are constructed.  Property, plant and equipment of the district are depreciated using the straight Line method over the following estimated useful lives:

Outdoor Equipment  20

Machinery and Tools 10

Kitchen/Appliances/Custodial Equipment 15

Science & Engineering Equipment 10

Furniture & Accessories 20

Business Machines 10

Copy Machines 5

Communications Equipment 10

Computer Equipment 5

Computer Software 5

Audio/Visual Equipment10

Books & Multi-Media Materials 5

Athletic Equipment 10

Musical Instruments 10

Licensed Vehicles  8

Grounds & Maintenance Equipment 15

Land Improvements 20

Buildings 50

Portable Structures 20

Swimming Pools 50

HVAC Systems 20

Roofing 20

Interior Construction 25

Carpet Replacements 7

Electrical/Plumbing 30

Sprinkler/Fire Systems 25

Utilities/Water/Sewer/Electrical Equip 30

Sidewalks & Curbs 20

Street Lighting 15

Assets which have been acquired with funds received through federal grants must be used in accordance with the terms of the grant. Federal regulations require, in some cases, that the District must reimburse the federal government for any assets which the District retains for its own use after the termination of the grant unless otherwise provided for by the grantor.

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DIC Inventories

An accounting will be made annually for all district-owned property, real and personal.

An inventory record system of capital assets over $500 shall be maintained by the business office.  All inventory records shall be annually updated showing deletions and additions, the estimated value, original cost (where available), date of purchase, serial numbers (where available) and location and condition of each piece of district-owned property.

Each building principal/department director shall assist the business office in the annual inventory of district owned property under the direction of the business office.  A copy of each inventory taken in an attendance center or department shall be on file in that building or department.

Approved:  October 12, 1998

Approved:  December 10, 2007

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DJB  Petty Cash Account

The board may establish petty cash accounts by resolution.  An annual report of all petty cash funds shall be included in the board's regular July agenda.  The board shall also receive bi-yearly reports.

Approved:  October 12, 1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DJE  Purchasing

The purchasing, receiving, storing and distribution of supplies, equipment and services for use in the district shall be managed efficiently and economically.  All purchases on behalf of the district shall be approved by the superintendent. 

Approved:  October 12, 1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DJEB  Quality Control

The board reserves the right to establish the specifications for goods or services purchased by the district.

Specifications

It is the responsibility of the originator of a purchase request to see that all specifications requested are complete.

Standardization

Whenever possible, standard lists of supplies and equipment shall be developed in all budget areas.

Quantity Purchasing

Quantity purchasing is encouraged.

Approved:  October 12,1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DJED  Bids and Quotations Requirements

All purchases shall be made in accordance with Kansas law.  All requests for services expected to be in excess of $20,000 shall also be submitted for bids. 

Professional services such as legal, auditing, insurance and architectural services may be excluded from the bid requirements.

The superintendent shall develop and maintain the data base of district vendors.  .  

The vendor data base may be used to notify potential bidders.          

The vendor data base will be reviewed annually by the superintendent

A copy of this policy shall be given to all bidders upon request.

All bids and supporting documentation shall be retained in the district business office for a period of five years after bids have been opened.

Bid Specifications

All bid specifications shall be written by the district's originator of a proposed purchase.    Specifications shall include, when necessary:  required performance, surety, bid and statutory bond information; compliance with preferential bid law; financial statements; the board's right to reject any or all bids; compliance with all federal, state and local laws, ordinances and regulations; the date, time and place for the opening of bids; and other items as the board directs.

Bid specifications shall not be negotiated after bids have been received.  Deficient specifications shall be corrected and new bids requested.  If an error is discovered in the bid specifications all bids shall be returned unopened and the project shall be re-bid using corrected and/or amended specifications.

Procedure

All bids must be submitted to the executive director of fiscal management and business operations in sealed envelopes with the name of the bidder and the date of the bid          opening plainly marked in the lower left-hand corner of the envelope.  All bids shall be opened publicly in the presence of at least two district employees on the stated day and time.  All bidders and other interested persons may be present when the bids are opened.

Bids may be opened by the originator of the request for proposal or other person designated by the superintendent and such opening shall be witnessed by one other district employee.  The bids shall then be arranged in order from low to high before they are presented to the board for action.

Responsible Bidder

All bids shall be awarded to the lowest responsible bidder.  The board remains the sole judge of whether or not a bidder is a responsible Bidder.  Criteria that may be used to judge a bidder’s qualifications, by way of illustration and not limitation, include financial standing, reputation, experience, resources, facilities, judgment and efficiency.

Withdrawal of Bids

Any bid may be withdrawn prior to the scheduled time for opening of bids.

Any bid received after the publicized date and time shall not be considered by the board.

Rejection of Bids

The board reserves the right to reject any and all bids and to ask for new bids. 

This reservation shall be specified in the publication or notification of bid letting.

The board reserves the right to waive any informalities in, or reject any parts of a bid.

Multi-State Purchasing Pools

The board may participate in multi-state purchasing pools.

Approved:   October 12, 1998

Updated:   July 7, 2003

Updated:  November 11, 2013

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DJEE  Local Purchasing

Purchases may be made from local vendors when the price, availability of the product and service are competitive with outside vendors for purchases not subject to the bidding law.  The board shall not grant preferential bid percentages to local contractors or businesses except as provided by statute.

Approved:  October 12,1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DJEF  Requisitions

The Director of Business and Finance shall develop a requisition form to be used by staff members requesting that certain goods be purchased for the district.

All requisitions shall be submitted to the purchasing agent at the designated time.  After a purchase order has been issued, the number of the purchase order shall be recorded on the requisition, and the number of the requisition shall be recorded on the purchase order.  After processing, the original copy of the requisition shall be filed in the office of the purchasing agent in numerical sequence. 

School letterhead shall not be used in ordering supplies and equipment for the personal use or purchase by employees.

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

Revised:  July 25, 2016

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DJEG  Purchase Orders and Contracts

Each purchase order shall include A specification of the item which adequately describes the characteristics and the quality standards; a quoted, firm, net, delivered price, whenever possible, and prices shown both per unit and as extended; clear delivery instructions which include time and place; a signature of the purchasing agent and budget account code number; and the appropriate address, email and telephone number.

A verbal order for purchase of goods or services may be issued only in emergencies and shall be confirmed by a written purchase order.  Whenever possible, a purchase order number should be given to the supplier.  A confirming requisition/purchase order shall be issued immediately thereafter and clearly marked as such.

Approved:  October. 12, 1998

Updated:  November 23, 2009

Revised:   November 11, 2013

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DJEJ  Payment Procedures

The superintendent shall recommend payment to vendors and suppliers for goods and services upon satisfactory receipt of all goods or completion of all services and for which there is a district purchase order number issued. (See DJEG)

The board shall consider payment of bills recommended for payment at regular board meetings except as provided for in policy. (See DJFAB)

The board may authorize payment of bills in advance of formal board approval in order to avoid a penalty for late payment or to take advantage of any early payment discount.

Approved:  October 12, 1998

Updated:  November 23, 2009

Revised:  November 11, 2013

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DJFA  Purchasing Authority

The superintendent is authorized to execute purchases on behalf of the district for the purchase of goods and services if the amount is less than $20,000.  Goods and services in excess of $20,000 will be submitted for bids; professional services such as legal, auditing insurance and architectural may be excluded from this requirement with the approval of the superintendent.  The board shall receive reports on all purchases.  The district shall follow K.S.A. Supp. 72-6760 (Competitive Bidding Statute) in soliciting bids for all purchases over $20,000 for construction, reconstruction or remodeling, or for the purchase of materials, goods or wares.  All bids and contracts will be submitted to the

Board of Education for approval.

Approved:  September 10, 2001

Updated:  July 7, 2003

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DJFAB  Emergency Expenditures (See CMA)

In an emergency, the superintendent shall have the authority to approve  expenditures necessary to prevent additional damage to district property, to keep the schools open or to reopen schools.  Emergency purchases shall be ratified by the board at the next regular or special board meeting.

Approved:  October 12, 1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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DK  Student Activity Fund Management   (See JH)

Any activity which involves the expenditure of student activity funds shall be subject to prior written approval of the principal.

Activity Fund Management

The building principals shall maintain an accurate record of all student activity funds in the respective attendance centers.  No funds shall be expended from these, accounts except in support of the student activity program.  No activity fund account shall have a negative balance.

The student activity report shall show opening and closing balances of each fund. The report shall also show the total amount of deposits and an itemized list of expenditures.

All student activity funds will be audited annually at the same time as the general fund budget.

Activity Fund Management

All payments from student activity funds shall be made upon purchase orders signed by the building principal

Receipts shall be kept for all revenue deposited into the activity fund of each attendance center.  All payments from the activity fund shall be by checks provided for that purpose.

Activity Fund Deposits

Activity funds from gate receipts or other sources may be deposited directly into a bank account maintained for this purpose.

Inactive Activity Funds (See JH)

The superintendent will assume control of all inactive activity funds and direct the disbursement of such funds to other activity fund accounts or expend such funds as approved by the board.

Approved:  October 12, 1998

Updated:  November 23, 2009

Reviewed:  November 11, 2013

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